February Real Estate Numbers and a Spike in Luxury Home Sales

February Real Estate Numbers and a Spike in Luxury Home Sales

📰 Ask the Colorado Dream House Team 📉
 
Welcome to today’s show with Dan Polimino where we’re discussing Denver’s #realestate market stats from last month, recent inventory improvements, interest rate increases, and the jump in luxury real estate sales in Colorado.
 


Full Transcript:
00:01 Hi everyone and welcome today’s show of ask the Colorado Dream House team. I’m your host Dan Polimino coming to you live from Denver, Colorado, and if you’re new to the show, well every Tuesday and Thursday about this time we talk about everything that is real estate buying, selling or investing in real estate, and again, it doesn’t matter where you are in the country. This information comes from thousands of transactions and years of experience and it works wherever you live. As always, if you’d like to leave a comment, you can do it right here on facebook. You can call us at seven to zero for four [inaudible] or team@ColoradoDreamHouse.com. We would love to hear from you and if we can help you buy, sell, or invest in real estate, we’d be happy to have that discussion with you as well. Two things we’d like to accomplish. Every show, we like to give you some market information and we’d like to answer your questions.
00:54 So let’s get to the news you can use and that is the February numbers that just came out today. Some interesting information here. Um, roughly about 404,600 new list deans came on the market in February. A bad news about 4,400 homes went under contract in February. So that means inventory only grew by about 200 homes. But the good news is, is that inventory is currently at it’s highest for the year. And I know what you’re saying. Well Dan, it’s only been two months yet. Active listings on the market is sitting at about 41 right now. Last month it was as low as 2,900 for a period of time. When I say last month, I mean January. Um, so it got really, really low down to 2,900. It’s up to about 4,000 in active listings. That’s really good news. The so active listings are up under contracts are up new listings or up.
02:03 The only thing that’s not up is sales. Sales actually dropped by about three percent. So in January there was about 3000 sales and in February that dropped down to about 2,900. So a slight dip in sales, but pretty much what we expect for this time of year. Again, the inventory is only gonna get better and increased now with each month going forward. So again, I want to urge you, if you’re a buyer, call us, call the Colorado Dream House team. Let us put you in touch with one of the many lenders that we work with. Let us get you not only pre qualified but maybe all the way through the underwriting process. So when the perfect calm pops up, we can go ahead and write that contract and know that you’re going to go to closing. So again, let’s get that work done on the front end because again, more and more houses are going to be hitting the market.
02:55 A couple of other things. The luxury market, let’s talk about that $1,000,000 in up in January there were a hundred sales in February. There were a hundred and two. Not much of a change, but I’m pretty consistent. However, a luxury sales overall are up about 56 percent year over a year. OK. So major jump from say this time last year. Well, as an example, this time last year in February of 2017, there were about 65 sales, so good, good size jump from 65 to a hundred and three a year later, the average price in January of a luxury sale was about one point five and the average price of a luxury sale in February was about [inaudible]. So it went down slightly. Here’s the good news. On average, people who are selling a luxury home are getting anywhere between 96 in 98 percent of their asking price. So again, a really, really good news.
03:57 I’m all the hundred and two that sold. I’m talking about single detached and condos. So that includes condos. If we just talk about single family detached, about eighty eight luxury homes sold and about 14 condos sold in the month of February. Um, let’s talk about days on market. Luxury market right now has about eight months of inventory, a overall, the luxury market that’s down and it continues to come down. So that’s good news. If you’ve got a luxury home to sell, I’m on the 7:50 to 1,000,000 range. There’s about four months of inventory on the market and in the 500 to 7:50 range, there’s about a little less than two months of inventory out there. So again, I’m days on market in that 500 to seven fifties, sitting at about 76 days, uh, in the [inaudible] to, um, uh, 19, uh, 1999 or a million. You’re sitting at about a hundred and nine days and anything over that, uh, over a million you’re sitting at about a hundred and 13 days on market.
05:08 All right? That is the February numbers. So if you want to dig into that, you want to know how that applies to you, your property, your location, your part of the city. Contact us at the Colorado Dream House team at [inaudible]. All right. To the questions they’re Colorado Dream House team were thinking about renting instead of buying. How do the numbers compare? Well, that’s going to really determine price range. Um, it all factors in and how much house you’re buying. But I mean, I don’t know. One of the big, big numbers that came out of what I just told you is that the average price of a single family home in Denver is now over 500,000. It’s about 502,000. The first time we’ve ever been that high 500 and thousand. So if you’re buying in that price range, chances are it’s going to be better to buy than to rent.
06:04 An example, I sold a, somebody a house over the weekend, it was priced at 5:15. The total mortgage payment on that is about 2,600, um, and rents for that same place or going for 3030 100. So you’re going to save about four or $500 buying versus renting. And not to mention the other benefits like the mortgage interest deduction and the fact that you’re paying down the principal. Hope that helps. But again, it really is particular to the price range. A dear Colorado Dream House team, I noticed rates have crept up. Do you expect that to continue? Well, I don’t have a crystal ball and I don’t work for the Federal Reserve. However, if I take the Fed chairman at his word about a week ago, he said that he anticipates raising interest rates three more times before the end of the year. So again, in case you miss that, he said he’s going to raise it three more times and basically why he’s doing that is because the economy is really humming along like a freight train and he’s worried that the economy will get so hot that inflation will rise as well, and it will rise to rapidly.
07:15 Uh, the Federal Reserve likes to keep inflation hovering around that two percent mark. So what they’ll do is they’ll raise interest rates to kind of tamp down the economy a little bit and slow it down. So if you’re a buyer, what does that mean? That means don’t wait for the next three rate increases. Get into the market now, contact us now, Dear Colorado Dream House team, what do you think of arm loans versus 30 year fixed and maybe getting in on a home at a much lower interest rate? It’s a great idea, but you’ve got to figure out what the end game is. What is the end game if you’re going to do a five one arm and maybe get an interest rate of three point two percent right, which is much better than the current interest rates. Current interest rate on a 30 year fixed is sitting at about four point two nine or for, we’ll call it four point three.
08:07 Um, so again, you’ll see that little uptick, but you could get in the low three’s with a five one arm. It all depends on how long you’re going to be there. If you’re going to be in and out of that house in less than five years, you can certainly go for the arm, but if it’s going to be greater than five years, don’t go that direction. All right, and again, that 30 year fixed is going to continue to creep up. All right, that’s the questions for today. A couple of things. One, if you’re looking to invest in real estate, give us a call here at the Colorado Dream House team. We’re working with a local builder here in Denver that takes their model homes and puts them up for sale and then leases them back. They’ve got really great cashflow and you’ve got a built in renter, so if that’s something you’re interested in, we’d like to hear from you here at the Colorado Dream House team.
08:57 Last but not least, if you think you’re selling, then maybe you want to look at our [inaudible] marketing guarantee and it goes like this. Interview us to sell your home and look at our marketing plan. Then interview our competition and if their, if their marketing plan is better than ours, you can hire them to sell your home and we’ll pay you $250. It’s that simple. We’re so confident that our marketing program for your home is better than everybody else’s, that we’ll put our money where our mouth is, so check out the details. Go to Colorado dream house.com forward slash 2:50. That’s today’s show. We’ll see everybody on Thursday. Have a good couple of days. Look forward to seeing you then.

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